HSBC Amanah Funds A udited Report 1 3 201 Amanah Funds A udited Report for the year from 1 January...

HSBC Amanah Funds Audited Report for the year from 1 January 2011 to 31 December 2011

R.C.S. Luxembourg B 74 964

HSBc m Global Asset Management

2

Audited report for the year ended 31 December 2011

Société d’Investissement à Capital Variable (SICAV), Luxembourg

3

No subscription can be received on the basis of financial reports. Subscriptions are only valid if made on the basis of the current prospectus accompanied by the latest annual and the most recent semi-annual report, if published thereafter. Audited report for the year from 1 January 2011 to 31 December 2011

Table of Contents

4

Board of Directors 5 HSBC Amanah Shariah Committee Members 6 Management and Administration Shareholder Information Directors’ Report Annual Shariah Compliance Report Report of the Réviseur d’Entreprises agréé

7 9 10 13 14

Statement of Net Assets as at 31 December 2011 16 Statement of Operations and Changes in Net Assets 18 Changes in the Number of Shares 20 Statistics over the last three years 21 Portfolio of Investments and other Net Assets 22 Notes to the Financial Statements 37 Currency Conversion Table 46 Fund Holiday Calendar for 2012 48

Board of Directors

5

Saqib MASOOD, Regional Head of Islamic Product Development, HSBC Saudi Arabia Limited Olaya Main Street, P.O. Box 2907, Riyadh 11413, Kingdom of Saudi Arabia Edgar K M NG, Head of Business Support Asia Pacific, HSBC Global Asset Management (Hong Kong) Limited HSBC Main Building, 1 Queen's Road Central, Hong Kong Irshad AKHTAR, Chief Operating Officer, HSBC Saudi Arabia Limited Olaya Main Street, P.O. Box 2907, Riyadh 11413, Kingdom of Saudi Arabia Richard LONG, Head of Global Funds Operations, HSBC Investment Funds (Luxembourg) S.A. 16, boulevard d’Avranches, L-1160 Luxembourg

HSBC Amanah Shariah Committee Members

6

Shaykh Nizam Yaquby Dr. Mohamed Ali Elgari Dr. Muhammad Imran Ashraf Usmani

Management and Administration

7

Registered Office 16, boulevard d'Avranches, L-1160 Luxembourg, Grand Duchy of Luxembourg Management Company HSBC Investment Funds (Luxembourg) S.A., 16, boulevard d'Avranches, L-1160 Luxembourg, Grand Duchy of Luxembourg Custodian, Administration Agent, Registrar and Transfer Agent, Central Paying Agent and Listing Agent

RBC Dexia Investor Services Bank S.A. 14, Porte de France, L- 4360 Esch-sur-Alzette, Grand Duchy of Luxembourg Investment Advisers

Sinopia Asset Management (UK) Limited (until 30 June 2011) 8 Canada Square, London E14 5HQ, United Kingdom HSBC Global Asset Management (UK) Limited (from 1 July 2011) 8 Canada Square, London, E14 5HQ, United Kingdom Sinopia Asset Management (until 30 June 2011) Immeuble Ile de France 4, Place de la Pyramide, La Défense 9, 92800 Puteaux, France HSBC Global Asset Management (France) (from 1 July 2011) Immeuble Ile de France, 4, Place de la Pyramide, La Défense 9, 92800 Puteaux, France HSBC Global Asset Management (Hong Kong) Limited Level 22, HBSC Main Building, 1 Queen’s Road Central, Hong Kong Share Distributors

Global Distributor HSBC Investment Funds (Luxembourg) S.A. 16, boulevard d'Avranches, L-1160 Luxembourg, Grand Duchy of Luxembourg Distributor for Middle-East HSBC Bank Middle East Limited HSBC House, Esplanade, St. Helier, JE4 8UB Jersey Distributor and Representative for Singapore HSBC Global Asset Management (Singapore) Limited 21 Collyer Quay, #13-02 HSBC Building, Singapore 049320, Singapore Distributor for Continental Europe HSBC Global Asset Management (France) Immeuble Ile de France 4, Place de la Pyramide, La Défense 9, 92800 Puteaux, France Representative for the United Kingdom HSBC Global Asset Management (UK) Limited 8 Canada Square, London E14 5HQ, United Kingdom

Management and Administration (continued)

8

Domiciliary Agent

HSBC Securities Services (Luxembourg) S.A., 16, boulevard d'Avranches, L-1160 Luxembourg, Grand Duchy of Luxembourg Auditor KPMG Luxembourg S. à r. l. 9, allée Scheffer, L-2520 Luxembourg, Grand Duchy of Luxembourg Legal Adviser Elvinger, Hoss & Prussen 2, place Winston Churchill, B.P. 425, L - 2014 Luxembourg, Grand Duchy of Luxembourg

Shareholder Information

9

Savings Directive

The Council Directive 2003/48/EC on the taxation of savings income in the form of interest payments (defined as Savings Directive) was implemented into Luxembourg law of 21 June 2005 (the “Law”). Under the Savings Directive, Member States of the European Union ("Member States") are required to provide the tax authorities of another Member State with details of payments of interest or other similar income paid by a person within its jurisdiction to an individual resident in that other Member State. Austria and Luxembourg have opted instead for a withholding tax system for a transitional period in relation to such payments. Switzerland, Andorra, Liechtenstein, Monaco and San Marino have agreed to implement similar measures to those laid down in the Directive. The dependent or associated territories in the Caribbean, the Channel Islands of Guernsey and Jersey and the Isle of Man committed to implement some measures of the Directive and will withhold tax during the same transitional period as for Luxembourg and Austria. Pursuant to the Law, the applicable withholding tax rate is 35% since 1 July 2011. Article 9 of the Law provides that no withholding tax will be withheld if the beneficial owner expressly authorises the paying agent to report information in accordance with the provisions of the Law. Dividends distributed by a sub-fund of the Company will be subject to the Savings Directive if more than 15% of the relevant sub-fund's assets are invested in debt claims (as defined in the Law). Proceeds realised by Shareholders on the disposal of Shares will be subject to such reporting or withholding if more than 40% of the relevant sub-fund's assets are invested in debt claims. HSBC Amanah Funds reserves the right to reject any application for Shares if the information provided by any prospective investor does not meet the standards required by legislation enacted as a result of this Savings Directive. Subject to the provisions of the Law, Shareholders are not subject to any capital gains, income, withholding, gift, estate, inheritance or other tax in Luxembourg (except for Shareholders domiciled, resident or having a permanent establishment in Luxembourg and except for certain former residents of Luxembourg if owning more than 10% of the Shares). Name of the sub-fund Tax status for

redemptions

Tax status for

distributions

Method used to

determine the

status

Period of validity

of the status

Global Equity Index Fund Out of Scope Out of Scope Investment Policy 01/01/2011 31/12/2011

Global Equity Out of Scope Out of Scope Investment Policy 01/01/2011 31/12/2011

Europe Equity Out of Scope Out of Scope Investment Policy 01/01/2011 31/12/2011

Asia Pacific ex Japan Equity Out of Scope Out of Scope Investment Policy 01/01/2011 31/12/2011

Directors’ Report

10

The Board of Directors present the Audited Annual Report for HSBC Amanah Funds (the “Company”) for the year ending 31 December 2011. The Fund

The Company is a variable capital investment company, incorporated under the laws of the Grand Duchy of Luxembourg and is organized as an “umbrella” with a number of sub-funds, each of which has their own investment policies and restrictions. At present, the Company has issued shares in 4 sub-funds. During the year, the total net assets of the Company increased from USD 152.2 million to USD 171.2 million at year end. The Company qualifies as an Undertaking for Collective Investments in Transferable Securities under the amended EC Directive 85/611 of 20 December 1985 and may therefore be offered for sale in European Union Member States, subject to registration in countries other than the Grand Duchy of Luxembourg. In addition, applications to register the Company and its sub-funds may be made in other countries. The Company and its sub-funds are currently registered for offer and distribution in the Grand Duchy of Luxembourg and in the following jurisdictions: Bahrain, Finland, France, Jersey, Jordan, Lebanon, Mauritius, Qatar, Singapore, Sweden, the United Kingdom and United Arab Emirates. Responsibility of the Directors

The responsibility of the Directors of the Company is governed exclusively by Luxembourg law. With respect to these financial statements, the duties of the Directors are governed by general corporate law and the law of 19 December, 2002 on, inter alia, the accounting and annual accounts of undertakings and by the law of 20 December 2002 relating to undertakings for collective investments. From 1 July 2011, the Company will be governed by Part I of the law of 17 December 2010 (the “2010 Law”) implementing the directive 2009/65/EC into Luxembourg law). Annual General Meeting

The next Annual General Meeting of the Company will be held on Friday, 20 April 2012.

Directors’ Report (continued)

11

Investment Managers comments regarding the performance during the year

HSBC Amanah Global Equity Index Fund

During 2011, the Dow Jones Islamic Titans 100 index rose by 1.18%, while the sub-fund (gross of fees, net of expenses and taxes) increased by 0.94% (Class AC). During the year, the majority of Dow Jones industry and sector groups registered positive returns. The three top-performing sectors were healthcare (up 14.4%), consumer services (up 10.6%) and telecommunications (up 6.1%), while the three worst performances came from basic materials (down 21.2%), industrials (down 9.2%) and technology (down 0.4%). The best-performing sector overall in 2011 was pharmaceuticals & biotechnology, which gained 14.8% over the period, while industrial metals & mining was the weakest performer, declining by 32.0%. At a country level, Norway (up 12.8%) led the pack, followed by Singapore (up 8.7%) and United States (up 6.4%). Meanwhile, Finland (down 49.6%), the Netherlands (down 29.0%) and Australia (down 23.3%) were the significant laggards in US dollar terms. HSBC Amanah Global Equity

During 2011, the HSBC Amanah Global Equity sub-fund was down 5.95% (Class Z), outperforming its benchmark by 2.3%. Equity markets experienced a very volatile year in 2011, due to several unexpected events that unsettled investors over the period. The year began with an escalation of the tensions in the Middle East that had started in late 2010 with Tunisia but gained momentum in January and February in Egypt. This was followed by the massive earthquake and tsunami that hit Japan on 11 March. Meanwhile, the sovereign debt crisis in Europe continued to weigh on investor sentiment. Indeed, the problems blighting the European Union lasted most of the year, as concerns moved from Greece and Ireland to Italy and Spain. Even France was not immune to the threat of contagion over the period. Fears intensified in the autumn as EU leaders procrastinated over a solution to prevent a systemic banking crisis. Economic and political responses were unable to keep the economic recovery on track; during the year, 2012 GDP growth expectations were revised down from 1.6% to –0.1% in the eurozone and from 3.3% to 2.1% in the United States. Against this erratic backdrop, risk aversion was the key factor in the distribution of market performance. In equities, the US market was the best performing while emerging markets and Europe lagged. At a sector level, cyclical segments struggled over the year; materials fell by 20% and industrials by 10%. Conversely, defensive sectors, such as healthcare and consumer, registered positive returns. During the period under review, our exposure management had a small positive impact on relative performance, as the sub-fund’s allocation to equity markets remained close to 97%. Country allocation as a whole contributed, notably an overweight position in the US and an underweight in Brazil. Stock selection was also positive. At a stock level, the best contributors were NeuStar Inc, an IT stock in the United States, Shire PLC, a UK healthcare company, and LG Fashion in the Korean IT sector. HSBC Amanah Europe Equity Over 2011, the HSBC Amanah Europe Equity sub-fund was down 10.72%, under performing its benchmark by 1.54% as active management was offset by costs. Equity markets experienced a very volatile year in 2011, due to several unexpected events that unsettled investors over the period. The year began with an escalation of the tensions in the Middle East that had started in late 2010 with Tunisia but gained momentum in January and February in Egypt. This was followed by the massive earthquake and tsunami that hit Japan on 11 March. Meanwhile, the sovereign debt crisis in Europe continued to weigh on investor sentiment. Indeed, the problems blighting the European Union lasted most of the year, as concerns moved from Greece and Ireland to Italy and Spain. Even France was not immune to the threat of contagion over the period. Fears intensified in the autumn as EU leaders procrastinated over a solution to prevent a systemic banking crisis. Economic and political responses were unable to keep the economic recovery on track; during the year, 2012 GDP growth expectations were revised down from 1.6% to –0.1% in the eurozone and from 3.3% to 2.1% in the United States. Against this erratic backdrop, risk aversion was the key factor in the distribution of market performance. In equities, the US market was the best performing while emerging markets and Europe lagged. At a sector level, cyclical segments struggled over the year; materials fell by 20% and industrials by 10%. Conversely, defensive sectors, such as healthcare and consumer, registered positive returns.

Directors’ Report (continued)

12

During the period under review, our exposure management had a positive impact on relative performance as the sub-fund’s allocation to equity markets remained close to 97%. Country allocation as a whole detracted, however. While underweight exposure to Finland added value, an overweight in the Netherlands was detrimental. At a stock level, the most significant contributions came from defensive sectors, notably Next, a UK retailer, and Shire, in the UK pharmaceutical sector. HSBC Amanah Asia Pacific ex Japan Equity For 2011, the HSBC Amanah Asia-Pacific ex-Japan sub-fund was down 19.49% (Class AC) outperforming its benchmark slightly.

Asian equities endured a volatile bear market in 2011, with the MSCI Asia Pacific Islamic ex Japan index falling 17.1% over the period. Troubling headline news from a number of sources across the globe resulted in a broad sell-off of risky assets. First of all, the devastating earthquake and tsunami in Japan led to fears of potential supply chain disruption. Any respite was short lived, as the unfolding political crisis and violence in the Middle East then became the main focus in the first quarter. The downgrading of Greece’s sovereign debt credit rating in the second quarter set the tone for the rest of the year, with the eurozone debt crisis taking centre stage. At the same time, investors became increasingly troubled about a potential recession in the US and Europe as well as a potential hard landing scenario in China. Indeed, global growth forecasts and corporate earnings estimates were slashed, and investor confidence in the ability of governments to find credible solutions to the ongoing fiscal issues weakened. The final quarter of the year saw an extreme spike in volatility as markets swung between optimism and pessimism with regard to the eurozone situation. In spite of some policy relief in China, as receding inflation provided leeway for a reduction in the banking reserve requirement ratio (RRR), this had a limited impact on the negative sentiment.

Within the MSCI Asia Pacific Islamic ex Japan index, the best-performing countries were the Philippines, Malaysia and Indonesia while India, Korea and Australia underperformed. At a sector level, telecoms, utilities and consumer staples outperformed, whilst materials, financials and industrials underperformed.

During the period under review, our stock selection strategy contributed to the sub-fund’s outperformance. The strategy focuses on picking stocks exhibiting attractive valuation, momentum and quality characteristics. With the markets in ‘risk-off’ mode, the valuation approach struggled as ‘cheap’ became ‘cheaper’, although stocks with strong quality traits outperformed. Our underexposure to the sharply plunging market also contributed slightly to overall performance.

Annual Shariah Compliance Report

13

Based on our view of the investments of HSBC Amanah Global Equity Index Fund, HSBC Amanah Global Equity, HSBC Amanah Europe Equity and HSBC Amanah Asia Pacific ex Japan Equity ("the sub-funds") and on the information provided to us by the representative of HSBC Amanah Funds, we hereby confirm that the Funds’ investments as well as their transactions during the calendar year ended 31 December 2011 are in compliance with the Islamic investment guidelines as interpreted and issued by HSBC Amanah Shariah Committee. 7 March 2012

Shaykh Nizam Yaquby Dr. Mohamed Ali Elgari

Dr. Muhammad Imran Ashraf Usmani

Members of HSBC Amanah Shariah Committee

Report of the Réviseur d’Entreprises agréé

14

To the Shareholders of HSBC Amanah Funds ("The SICAV ") 16, boulevard d’Avranches L -1160 Luxembourg Grand Duchy of Luxembourg Following our appointment at the Annual General Meeting of the Shareholders of 15 April 2011, we have audited the accompanying financial statements of HSBC Amanah Funds and each of its sub-funds, which comprise the statement of net assets and the portfolio of investments and other net assets as at 31 December 2011 and the statement of operations and changes in net assets for the year then ended, and a summary of significant accounting policies and other explanatory information. Board of Directors of the SICAV responsibility for the financial statements The Board of Directors of the SICAV is responsible for the preparation and fair presentation of these financial statements in accordance with Luxembourg legal and regulatory requirements relating to the preparation of the financial statements, and for such internal control as the Board of Directors of the SICAV determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Responsibility of the Réviseur d'Entreprises agréé Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing as adopted for Luxembourg by the Commission de Surveillance du Secteur Financier. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the judgment of the Réviseur d'Entreprises agréé, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the Réviseur d'Entreprises agréé considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Directors of the SICAV, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements give a true and fair view of the financial position of HSBC Amanah Funds SICAV and each of its sub-funds as of 31 December 2011, and of the results of their operations and changes in their net assets for the year then ended in accordance with Luxembourg legal and regulatory requirements relating to the preparation of the financial statements.

Report of the Reviseur d'Entreprises agree (continued)

Orher marter

Supplementary information included in the annual repol1 has been reviewed in the oontext of our mandate but has not been subject to specific audit procedures carried out in accordance with the standards described above. Consequently, we express no opinion on such information. However, we have no observation to make concerning such information in the context of the financia l statements taken as a whole.

Luxembourg, 26 March 2012 KPMG Luxemboufg S.lI r.l. Cabinet de revision agree

15

16

Statement of Net Assets as at 31 December 2011

The accompanying notes form an integral part of these financial statements.

Portfolio at Cost

Unrealised Appreciation/(Depreciation)

Portfolio at Market Value (note 3b)

Cash at Bank

Payable to Brokers

Receivable from Shareholders

Payable to Shareholders

Other Assets

Other Liabilities (note 4)

Total Net Assets

ConsolidatedTotalUSD

163,994,048

5,044,039

169,038,087

2,713,768

(1,135,042)

1,148,651

(258,515)

126,669

(403,101)

171,230,517

USD

Global EquityIndex Fund

87,753,306

4,741,406

92,494,712

94,180

(1,135,042)

1,079,069

(45,274)

73,476

(116,659)

92,444,462

USDGlobal Equity

55,587,683

1,489,314

57,076,997

1,773,024

-

45,495

(49,001)

32,544

(154,649)

58,724,410

USDEurope Equity

8,369,092

(338,108)

8,030,984

264,693

-

10,911

(20,092)

6,563

(42,425)

8,250,634

Share AC

Number of Shares Outstanding

Net Asset Value per Share

Share AD



Share IC



Share W



Share ZC



Share ZD



Share Z



-

-

-

-

-

-

-

-

-

-

-

-

-

-

465,014.777

6.32

4,553,946.141

6.27

-

-

7,469,019.173

6.83

-

-

-

-

1,548,929.709

6.45

834,848.355

8.52

44,042.329

8.52

220,911.642

8.56

-

-

-

-

5,774,430.511

8.55

-

-

51,558.512

88.72

2,501.047

88.76

-

-

-

-

41,346.716

83.55

-

-

-

-

17

Statement of Net Assets as at 31 December 2011

USD

Asia Pacific exJapan Equity

12,283,967

(848,573)

11,435,394

581,871

-

13,176

(144,148)

14,086

(89,368)

11,811,011

64,318.483

127.61

3,677.511

128.19

-

-

-

-

23,569.327

132.88

-

-

-

-

18

Statement of Operations and Changes in Net Assets


Net Assets at the Beginning of the Year 152,215,939

INCOME

Investment Income 3,068,266

Total Income 3,068,266

EXPENSES

Management Fees (397,246)

Custodian & Sub-custodian Fees (96,862)

Subscription Tax (note 5) (28,780)

Amortisation of Formation Expenses (17,234)

Audit, Printing and Publication Fees (93,533)

Transfer Agency Fees (214,181)

Other Charges (note 9) (723,315)

Total Expenses (1,571,151)

Net Investment Income/(Loss) 1,497,115

Realised Gain/(Loss) on Sale ofInvestments

9,075,427

Realised Gain/(Loss) for the Year beforeForeign Currency Movement

10,572,542

Gain/(Loss) on Foreign Currency (319,000)

Change in unrealisedappreciation/(depreciation) ofInvestments and Foreign ExchangeContracts

(17,748,694)

Change in Total Net Assets as a Result of Operations

(7,495,152)

Proceeds on Issue of Shares 84,321,860

Payments on Redemption of Shares (56,314,094)

Dividends Paid (note 7) (1,498,036)

Net Assets as at 31 December 2011 171,230,517

Consolidated TotalUSD

70,466,838

1,663,524

1,663,524

(192,574)

(16,419)

(14,622)

-

(14,650)

(38,938)

(246,139)

(523,342)

1,140,182

1,611,783

2,751,965

(121,007)

(3,090,186)

(459,228)

59,060,735

(35,660,101)

(963,782)

92,444,462

USD

Global EquityIndex Fund

58,640,295

899,547

899,547

(78,476)

(32,786)

(7,911)

(15,839)

(57,044)

(66,756)

(214,994)

(473,806)

425,741

5,784,943

6,210,684

(99,106)

(9,108,555)

(2,996,977)

10,798,655

(7,183,309)

(534,254)

58,724,410

USDGlobal Equity

6,059,897

142,716

142,716

(39,497)

(24,190)

(2,327)

-

(7,515)

(56,409)

(108,725)

(238,663)

(95,947)

503,849

407,902

156

(1,373,145)

(965,087)

5,848,163

(2,692,339)

-

8,250,634

USDEurope Equity

19

Statement of Operations and Changes in Net Assets


17,048,909

362,479

362,479

(86,699)

(23,467)

(3,920)

(1,395)

(14,324)

(52,078)

(153,457)

(335,340)

27,139

1,174,852

1,201,991

(99,043)

(4,176,808)

(3,073,860)

8,614,307

(10,778,345)

-

11,811,011

USD

Asia Pacific exJapan Equity

20

Global Equity Index Fund

Number of Shares in Issue at theBeginning of the year

Number of Shares Redeemed

Number of Shares in Issue at the Endof the year

Number of Shares Subscribed

175,360.515

(35,979.388)

465,014.777

Share AC

325,633.650

2,864,874.303

(630,483.067)

4,553,946.141

Share AD

2,319,554.905

5,533,878.033

(577,004.920)

7,469,019.173

Share W

2,512,146.060

2,015,458.421

(4,363,559.160)

1,548,929.709

Share Z

3,897,030.448

Global Equity





182,370.230

(86,382.812)

834,848.355

Share AC

738,860.937

4,136.653

(3,426.467)

44,042.329

Share AD

43,332.143

-

-

220,911.642

Share IC

220,911.642

6,303,977.764

(694,210.405)

5,774,430.511

Share ZD

164,663.152

Europe Equity





8,763.511

(7,441.339)

51,558.512

Share AC

50,236.340

-

(1,192.254)

2,501.047

Share AD

3,693.301

55,299.106

(19,353.219)

41,346.716

Share ZC

5,400.829

Asia Pacific ex Japan Equity





15,430.976

(7,089.104)

64,318.483

Share AC

55,976.611

2,438.477

(1,100.694)

3,677.511

Share AD

2,339.728

87,485.251

(63,915.924)

23,569.327

Share ZC

-

Changes in the Number of Shares

21

Global Equity Index FundUSD

AC 6.326.376.00

AD 6.276.346.00

W 6.836.886.53

Z 6.456.526.18

Total Net Assets 54,686,657 70,466,838 92,444,462


Global EquityUSD

AC 8.529.067.94

AD 8.529.06-

IC 8.56--

ZD 8.559.037.88

Total Net Assets 54,532,496 58,640,295 58,724,410


Europe EquityUSD

AC 88.72101.0095.57

AD 88.76--

ZC 83.5593.5887.15

Total Net Assets 13,829,781 6,059,897 8,250,634


Asia Pacific ex Japan EquityUSD

AC 127.61158.50138.11

AD 128.19159.21138.70

ZC 132.88162.48139.37

Total Net Assets 16,432,421 17,048,909 11,811,011


Statistics over the last three years

at 31 December 2010at 31 December 2009 at 31 December 2011

Portfolio of Investments and other Net Assets as at 31 December 2011

22

BHP BILLITON LTD 27,636 975,201 1.04AUD

TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCKEXCHANGE LISTING

SHARES

AUSTRALIA

CSL LTD 7,315 239,979 0.26AUD

NEWCREST MINING 10,530 319,543 0.35AUD

RIO TINTO LIMITED 6,060 374,627 0.41AUD

WOODSIDE PETROLEUM LTD 8,510 267,143 0.29AUD

2,176,493 2.35

TENCENT HOLDINGS 13,700 275,354 0.30HKD

CAYMAN ISLANDS

275,354 0.30

NOVO-NORDISK A/S -B- 5,495 633,447 0.69DKK

DENMARK

633,447 0.69

NOKIA OY 52,733 258,214 0.28EUR

FINLAND

258,214 0.28

AIR LIQUIDE 3,955 490,777 0.53EUR

FRANCE

L'OREAL 3,342 350,110 0.38EUR

SANOFI-AVENTIS 15,707 1,157,135 1.25EUR

SCHNEIDER ELECTRIC SA 7,624 402,614 0.44EUR

TOTAL SA 30,863 1,582,559 1.71EUR

3,983,195 4.31

SAP AG 12,851 681,481 0.74EUR

GERMANY

SIEMENS AG 12,000 1,151,823 1.24EUR

1,833,304 1.98

ANGLO AMERICAN PLC 18,655 689,713 0.75GBP

GREAT BRITAIN

ASTRAZENECA PLC 18,404 850,899 0.92GBP

BG GROUP PLC 46,601 996,897 1.08GBP

BHP BILLITON PLC 29,729 867,440 0.94GBP

BP PLC /ADR (6 SHS) 260,854 1,866,835 2.01GBP

INVESTMENTS

Global Equity Index FundStatement of investments as at 31 December 2011(expressed in USD)

Description Quantity Currency Evaluation % netassets

GLAXOSMITHKLINE PLC 70,950 1,622,526 1.75GBP

RECKITT BENCKISER GROUPPLC 8,476 418,887 0.45GBP

RIO TINTO PLC 19,590 951,401 1.03GBP

8,264,598 8.93

CHINA MOBILE LTD 72,174 705,326 0.77HKD

HONG KONG

CNOOC LTD 208,500 364,564 0.39HKD

1,069,890 1.16

ACCENTURE PLC 8,910 474,279 0.51USD

IRELAND

474,279 0.51

ASTELLAS PHARMA INC. 6,100 248,154 0.27JPY

JAPAN

CANON INC. 15,550 689,180 0.75JPY

DENSO CORP. 7,140 197,292 0.21JPY

FANUC LTD JPY 50 2,800 428,698 0.46JPY

FUJIFILM HOLDINGS CORP. 6,650 157,564 0.17JPY

INDEX CORP. 38 239,537 0.26JPY

KOMATSU LTD 13,400 313,317 0.34JPY

KYOCERA CORP. 2,540 204,349 0.22JPY

NTT DOCOMO INC. 223 410,118 0.44JPY

SHIN-ETSU CHEMICAL CO. 5,600 275,851 0.30JPY

TAKEDA PHARMACEUTICALCO. LTD 10,250 450,286 0.49JPY

3,614,346 3.91

ROYAL PHILIPSELECTRONICS 14,227 300,672 0.33EUR

NETHERLANDS

300,672 0.33

SCHLUMBERGER LTD 18,760 1,281,496 1.39USD

NETHERLANDS ANTILLES

1,281,496 1.39

STATOIL ASA 15,010 386,069 0.42NOK

NORWAY

386,069 0.42


23


SINGAPORE TELECOM/BOARD LOT 1000 96,535 230,049 0.25SGD

SINGAPORE

230,049 0.25

HYUNDAI MOBIS 844 213,917 0.23KRW

SOUTH KOREA

POSCO 937 309,060 0.33KRW

SAMSUNG ELECTRONICS CO.LTD 1,107 1,016,607 1.11KRW

1,539,584 1.67

ERICSSON TEL -B- 41,489 426,070 0.46SEK

SWEDEN

HENNES & MAURITZ AB 13,690 441,936 0.48SEK

868,006 0.94

ABB LTD ZUERICH 32,288 610,471 0.66CHF

SWITZERLAND

NOVARTIS AG BASEL 36,420 2,091,490 2.26CHF

ROCHE HOLDING AGGENUSSSCHEIN 9,761 1,661,802 1.80CHF

SYNGENTA AG 1,324 389,370 0.42CHF

4,753,133 5.14

HON HAI PRECISIONINDUSTRY 63,737 350,554 0.38USD

TAIWAN

350,554 0.38

ABBOTT LABORATORIES INC. 21,635 1,216,536 1.32USD

UNITED STATES

AMGEN INC. 12,185 782,399 0.85USD

APACHE CORP. 5,320 481,886 0.52USD

APPLE INC. 12,900 5,224,499 5.65USD

BAKER HUGHES INC. 6,040 293,786 0.32USD

BAXTER INTERNATIONAL INC. 8,031 397,374 0.43USD

BRISTOL MYERS SQUIBB CO. 23,878 841,461 0.91USD

CHEVRON CORPORATION 27,861 2,964,410 3.21USD

CISCO SYSTEMS INC. 74,725 1,351,028 1.46USD

COCA COLA CO. 29,034 2,031,509 2.20USD

COLGATE-PALMOLIVE CO. 6,218 574,481 0.62USD

CONOCOPHILLIPS 17,176 1,251,615 1.35USD

CORNING INC. 21,747 282,276 0.31USD



CVS CAREMARK GROUP 18,693 762,301 0.82USD

DEVON ENERGY CORP. 5,533 343,046 0.37USD

DU PONT DE NEMOURS &CO. /E.I. 12,959 593,263 0.64USD

ELI LILLY & CO. 13,644 567,045 0.61USD

EMC CORP. 28,356 610,788 0.66USD

EMERSON ELECTRIC CO. 10,347 482,067 0.52USD

EXXON MOBIL CORP. 66,689 5,652,559 6.10USD

FREEPORT MCMORANCOPPER & GOLD -B- 13,079 481,176 0.52USD

GILEAD SCIENCES INC. 10,446 427,555 0.46USD

GOOGLE INC. -A- 3,540 2,286,486 2.47USD

HALLIBURTON CO. 12,818 442,349 0.48USD

HEWLETT-PACKARD CO. 27,622 711,543 0.77USD

HOME DEPOT INC. 21,430 900,917 0.97USD

HONEYWELLINTERNATIONAL INC. 9,920 539,152 0.58USD

IBM CORP. 16,415 3,018,389 3.27USD

INTEL CORP. 70,785 1,716,536 1.86USD

JOHNSON & JOHNSON 38,020 2,493,352 2.70USD

LOWE S COMPANIES INC. 17,526 444,810 0.48USD

MARATHON OIL CORP. 9,791 286,583 0.31USD

MEDTRONIC INC. 14,745 563,996 0.61USD

MERCK 42,726 1,610,770 1.74USD

MICROSOFT CORP. 103,874 2,696,569 2.92USD

MONSANTO CO. 7,431 520,690 0.56USD

NEWMONT MINING CORP. 6,725 403,567 0.44USD

OCCIDENTAL PETROLEUMCORP. 11,261 1,055,156 1.14USD

ORACLE CORP. 54,065 1,386,767 1.50USD

PFIZER INC. 107,100 2,317,644 2.51USD

PROCTER & GAMBLE CO. 38,194 2,547,922 2.76USD

QUALCOMM INC. 23,354 1,277,464 1.38USD

TEXAS INSTRUMENTS INC. 15,880 462,267 0.50USD

UNION PACIFIC CORP. 6,717 711,599 0.77USD

UNITED PARCEL SERVICEINC. -B- 10,240 749,466 0.81USD

WALGREEN CO. 12,203 403,431 0.44USD

WAL-MART STORES INC. 24,617 1,471,112 1.59USD

3M CO. 8,930 729,849 0.79USD

59,361,446 64.20

99.14TOTAL SHARES 91,654,129



24

TAIWAN SEMICONDUCTORMANUFACTURING /SADR 65,111 840,583 0.91USD

SADR (Sponsored American Dep. Receipt)

TAIWAN

840,583 0.91

0.91TOTAL SADR (Sponsored American Dep.Receipt)

840,583

100.05TOTAL TRANSFERABLE SECURITIESADMITTED TO AN OFFICIAL STOCKEXCHANGE LISTING

92,494,712

100.05TOTAL INVESTMENTS 92,494,712

(0.05)OTHER NET ASSETS LESS LIABILITIES (50,250)

100.00TOTAL NET ASSETS 92,444,462



The list of portfolio changes is available free of charge from the registered office of the Fund and from the German paying and information agent,HSBC Trinkaus & Burkhardt AG, Koenigsallee 21-23, 40212 Duesseldorf.

25

%

Economic Division of Investment(expressed as a percentage of net assets)

Pharmaceuticals and cosmetics 21.46Energy 21.09Office equipment and computers 11.81Electronics and electrical equipment 9.38Internet Software 7.93Retail trade, department stores 3.96News transmission 3.89Consumer goods 3.83Chemicals 2.45Coal mines, heavy industries 2.31Food 2.20Non-ferrous metals 2.19Transport 1.58Index Options 1.57Precious metals 1.31Holding companies 1.22Aerospace technology 0.58Other services 0.51Automobile industry 0.44Mechanics, machinery 0.34

Other net assets less liabilities (0.05)

100.00Total Net Assets

Portfolio of Investments and other Net Assets



26

AGL ENERGY 28,900 424,573 0.72AUD


SHARES

AUSTRALIA

BHP BILLITON LTD 22,000 776,322 1.33AUD

FORTESCUE METALS GROUPLTD 76,800 336,200 0.57AUD

MEDUSA MINING LTD 25,000 114,054 0.19AUD

1,651,149 2.81

GIORDANO INTL LTD 322,000 233,417 0.40HKD

BERMUDA ISLANDS

233,417 0.40

BANKERS PETROLEUM -A- 32,800 143,022 0.24CAD

CANADA

BARRICK GOLD CORP. 12,000 543,874 0.93CAD

CALFRAC WELL SERVICESLTD 9,500 265,897 0.45CAD

NEVSUN RESOURCES LTD 39,900 221,786 0.38CAD

PACIFIC RUB SHS 9,300 171,067 0.29CAD

SUNCOR ENERGY 19,400 559,757 0.96CAD

TRICAN WELL SERVICE LTD 19,800 341,262 0.58CAD

ULTRA PETROLEUM 6,900 204,447 0.35USD

2,451,112 4.18

ASM PACIFIC TECHNOLOGYLTD 25,200 282,771 0.48HKD

CAYMAN ISLANDS

DAPHNE INTERNATIONALHLDGS LTD 184,600 205,596 0.35HKD

TENCENT HOLDINGS 22,800 458,254 0.78HKD

TPK HOLDINGS CO. 15,000 183,542 0.31TWD

1,130,163 1.92

COLOPLAST /-B- 1,800 259,687 0.44DKK

DENMARK

259,687 0.44

NOKIAN TYRES PLC 11,800 381,116 0.65EUR

FINLAND

381,116 0.65

INVESTMENTS

Global EquityStatement of investments as at 31 December 2011(expressed in USD)


SANOFI-AVENTIS 4,500 331,515 0.56EUR

FRANCE

TOTAL SA 15,200 779,409 1.33EUR

1,110,924 1.89

BAYER 7,800 500,204 0.86EUR

GERMANY

ELRINGKLINGER AG /NAM. 8,600 214,127 0.36EUR

SIEMENS AG 3,700 355,145 0.60EUR

1,069,476 1.82


GREAT BRITAIN


BP PLC /ADR (6 SHS) 32,900 235,453 0.40GBP

FERREXPO PLC 73,000 304,952 0.52GBP

KINGFISHER PLC 110,300 429,743 0.73GBP

MICRO FOCUS INTL PLC 37,900 227,473 0.39GBP

RIO TINTO PLC 6,300 305,963 0.52GBP

SMITHS GROUP PLC 28,100 399,582 0.68GBP

3,077,321 5.25

CHINA MOBILE LTD 52,000 508,174 0.87HKD

HONG KONG

CNOOC LTD 222,100 388,343 0.66HKD

LENOVO GROUP LTD 594,000 396,172 0.67HKD

1,292,689 2.20

PT INDOCEMENT TUNGGAL/DEMAT. 119,000 223,096 0.38IDR

INDONESIA

PT PERUSAHAANPERKEBUNAN 913,500 224,149 0.38IDR

447,245 0.76

SALVATORE FERRAGAMOSPA 17,500 231,265 0.39EUR

ITALY

231,265 0.39

FANUC LTD JPY 50 3,600 551,183 0.94JPY

JAPAN

HOGY MEDICAL CO. LTD 5,400 228,451 0.39JPY

KEYENCE CORP. 1,200 289,472 0.49JPY


27


KOMATSU LTD 15,900 371,771 0.63JPY

KURARAY CO. LTD 22,500 320,217 0.55JPY

STANLEY ELECTRIC CO. LTD 26,500 389,544 0.66JPY

TOKYO SEIMITSU CO. LTD 11,900 226,895 0.39JPY

2,377,533 4.05

SHIRE PLC 9,100 317,212 0.54GBP

JERSEY

317,212 0.54

MILLICOM INTLCELL./SWED.DEP. 3,000 301,738 0.51SEK

LUXEMBOURG

301,738 0.51

GENTING PLANTATION BHD 87,600 237,653 0.40MYR

MALAYSIA

237,653 0.40

ASML HOLDING NV 12,000 505,889 0.87EUR

NETHERLANDS

REED ELSEVIER NV 37,900 443,143 0.75EUR

VISTAPRINT NV 7,000 214,200 0.36USD

1,163,232 1.98

STATOIL ASA 11,200 288,073 0.49NOK

NORWAY

YARA INTERNATIONAL ASA 6,800 273,461 0.47NOK

561,534 0.96

KGHM POLSKA MIEDZ SA 5,000 161,039 0.27PLN

POLAND

161,039 0.27

ANGLOGOLD ASHANTI LTD 10,800 459,377 0.78ZAR

SOUTH AFRICA

EXXARO RESOURCESLIMITED 11,300 235,143 0.40ZAR

GOLD FIELDS 28,000 432,137 0.74ZAR

KUMBA IRON ORE LTD 3,900 241,535 0.41ZAR

MTN GROUP LTD 18,400 327,575 0.56ZAR

SASOL LTD 6,200 296,047 0.50ZAR

1,991,814 3.39



CELLTRION INC 7,000 217,217 0.37KRW

SOUTH KOREA

217,217 0.37

ATLAS COPCO AB A 22,100 477,121 0.81SEK

SWEDEN

477,121 0.81

NOVARTIS AG BASEL 10,900 625,954 1.07CHF

SWITZERLAND

ROCHE HOLDING AGGENUSSSCHEIN 4,800 817,196 1.38CHF

THE SWATCH GROUP AG 1,200 451,075 0.77CHF

TYCO ELECTRON /REG. SHS 8,500 261,885 0.45USD

2,156,110 3.67

HTC CORP. 19,755 311,535 0.53TWD

TAIWAN

311,535 0.53

PTT EXPLORATION &PRODUCTION PUBLIC /FOR.REG. 65,500 349,821 0.60THB

THAILAND

349,821 0.60

ABBOTT LABORATORIES INC. 11,659 655,586 1.12USD

UNITED STATES

ADVANCE AUTO PARTS INC. 3,700 257,631 0.44USD

AGILENT TECHNOLOGIES 8,000 279,440 0.48USD

ALBEMARLE CORP. 7,600 391,476 0.67USD

AMERICAN TOWER CORP. -A- 8,600 516,086 0.88USD

AMGEN INC. 11,100 712,731 1.21USD

APACHE CORP. 5,500 498,190 0.85USD

APPLE INC. 5,000 2,024,999 3.44USD

BED BATH & BEYOND INC. 5,400 313,038 0.53USD

BORG WARNER INC. 6,200 395,188 0.67USD

CADENCE DESIGN SYSTEMS 23,700 246,480 0.42USD

CELGENE CORP. 8,100 547,560 0.93USD

CF INDUSTRIES HOLDINGSINC. 3,300 478,434 0.81USD

CHEVRON CORPORATION 11,800 1,255,520 2.14USD

CISCO SYSTEMS INC. 35,700 645,456 1.10USD

COACH INC. 7,800 476,112 0.81USD



28

COCA COLA CO. 3,500 244,895 0.42USD

COCA-COLA ENTERPRISESINC. 10,100 260,378 0.44USD

CONTINENTAL RESOURCESINC. 7,500 500,325 0.85USD

CUMMINS INC. 5,200 457,704 0.78USD

DEVON ENERGY CORP. 5,400 334,800 0.57USD

DUN AND BRADSTREETCORP. 3,600 269,388 0.46USD

EASTMAN CHEMICAL CO. 9,200 359,352 0.61USD

EATON CORP. 8,000 348,240 0.59USD

EXPRESS SCRIPTS INC. 12,700 567,563 0.97USD

EXXON MOBIL CORP. 23,100 1,957,956 3.33USD

FOOT LOCKER INC. 18,400 438,656 0.75USD

GARDNER DENVER INC. 3,200 246,592 0.42USD

GILEAD SCIENCES INC. 13,200 540,276 0.92USD

GLOBAL PAYMENTS INC 8,900 421,682 0.72USD

GOOGLE INC. -A- 1,700 1,098,030 1.87USD

HALLIBURTON CO. 16,300 562,513 0.96USD

HARMAN INTERNATIONALINDUSTRIES INC. 5,800 220,632 0.38USD

HONEYWELLINTERNATIONAL INC. 7,200 391,320 0.67USD

IBM CORP. 4,200 772,296 1.32USD

INTEL CORP. 38,200 926,350 1.58USD

ITT EDUCATIONAL SERVICESINC. 5,300 301,517 0.51USD

JOHNSON & JOHNSON 7,427 487,063 0.83USD

KENNAMETAL INC. 10,400 379,808 0.65USD

MEDCOHEALTH SOLUTIONS 8,700 486,330 0.83USD

MERCK 12,500 471,250 0.80USD

MICROSOFT CORP. 46,900 1,217,524 2.07USD

NEUSTAR INC. 8,500 290,445 0.49USD

OCCIDENTAL PETROLEUMCORP. 7,800 730,860 1.24USD

ORACLE CORP. 32,100 823,365 1.40USD

PFIZER INC. 32,300 698,972 1.19USD

PRICELINE COM INC. 900 420,939 0.72USD

PROCTER & GAMBLE CO. 7,300 486,983 0.83USD

QUALCOMM INC. 16,300 891,610 1.52USD

RIVERBED TECHNOLOGY INC. 8,400 197,400 0.34USD

SOHU.COM INC. 4,900 245,000 0.42USD

TEMPUR-PEDICINTERNATIONAL 3,700 194,361 0.33USD

TIMKEN CO. 5,500 212,905 0.36USD



UNION PACIFIC CORP. 4,600 487,324 0.83USD

UNITED PARCEL SERVICEINC. -B- 6,800 497,692 0.85USD

UTD THERAPEUTICS CORP(DE) 5,600 264,600 0.45USD

VERTEX PHARMACEUTICALS 8,600 285,606 0.49USD

WABCO HOLDINGS INC. 8,400 364,560 0.62USD

WAL-MART STORES INC. 7,400 442,224 0.75USD

WATSONPHARMACEUTICALS INC. 3,800 229,292 0.39USD

WHITING PETROLEUM CORP. 6,900 322,161 0.55USD

32,042,666 54.57

95.36TOTAL SHARES 56,001,789

MINDRAY MEDICALINTERNATIONAL 8,900 228,196 0.39USD

SADR (Sponsored American Dep. Receipt)

CHINA

228,196 0.39

GAZPROM OAO /SADR REGS 54,300 579,131 0.98USD

FEDERATION OF RUSSIA

579,131 0.98

1.37TOTAL SADR (Sponsored American Dep.Receipt)

807,327

BAIDU INC. -A- /ADR 2,300 267,881 0.46USD

ADR (American Depositary Receipt)

CAYMAN ISLANDS

267,881 0.46

0.46TOTAL ADR (American Depositary Receipt) 267,881


57,076,997


2.81OTHER NET ASSETS LESS LIABILITIES 1,647,413




29

%


Energy 17.87Pharmaceuticals and cosmetics 11.37Internet Software 9.25Office equipment and computers 7.40Electronics and electrical equipment 6.52News transmission 4.83Index Options 4.54Coal mines, heavy industries 3.76Mechanics, machinery 3.65Retail trade, department stores 3.60Chemicals 3.50Precious metals 3.02Automobile industry 2.28Holding companies 1.94Transport 1.68Textile 1.59Aerospace technology 1.35Non-ferrous metals 1.17Consumer goods 1.16Food 0.86Agriculture and fishing 0.85Clock and watch-making industry 0.77Graphic art and publishing 0.75Public services 0.72Tyres and rubber 0.65Healthcare, education and social services 0.51Banks and financial institutions 0.46Real estate companies 0.40Construction, building materials 0.38Forest products and paper industry 0.36

Other net assets less liabilities 2.81



Global Equity


30

BELGACOM SA 2,090 65,767 0.80EUR


SHARES

BELGIUM

MELEXIS NV IEPER 2,720 36,616 0.44EUR

102,383 1.24

COLOPLAST /-B- 280 40,396 0.49DKK

DENMARK

NOVO-NORDISK A/S -B- 1,850 213,262 2.58DKK

PANDORA A/S 3,590 33,860 0.41DKK

287,518 3.48

NOKIA OY 9,530 46,665 0.57EUR

FINLAND

NOKIAN TYRES PLC 1,840 59,428 0.72EUR

106,093 1.29

AIR LIQUIDE 580 71,972 0.87EUR

FRANCE

ILIAD 300 37,134 0.45EUR

IPSEN 936 29,465 0.36EUR

LEGRAND HOLDING ACT.PROV. OPO 2,070 66,776 0.81EUR

SANOFI-AVENTIS 2,480 182,702 2.21EUR

SCHNEIDER ELECTRIC SA 2,152 113,644 1.38EUR

TOTAL SA 8,170 418,933 5.08EUR

920,626 11.16

BASF NAMEN-AKT. 3,730 260,941 3.16EUR

GERMANY

BAYER 2,900 185,973 2.25EUR

ELRINGKLINGER AG /NAM. 1,070 26,641 0.32EUR

KRONES AG 966 46,104 0.56EUR

SAP AG 4,510 239,163 2.90EUR

SIEMENS AG 3,040 291,794 3.55EUR

SMA SOLAR TECHNOLOGYAG 390 21,854 0.26EUR

1,072,470 13.00

INVESTMENTS

Europe EquityStatement of investments as at 31 December 2011(expressed in USD)


ANGLO AMERICAN PLC 6,050 223,681 2.71GBP

GREAT BRITAIN


BG GROUP PLC 9,650 206,435 2.50GBP


BP PLC /ADR (6 SHS) 55,570 397,694 4.81GBP

CAIRN ENERGY 12,070 49,765 0.60GBP

CAPITA GRP 3,530 34,479 0.42GBP

C&W COMMUN 66,000 39,182 0.47GBP

EURASIAN NATURALRESOURCES CORP. PLC 5,890 58,171 0.71GBP

FERREXPO PLC 6,670 27,863 0.34GBP

FRESNILLO PLC 2,176 51,639 0.63GBP

GLAXOSMITHKLINE PLC 14,170 324,048 3.93GBP

NEXT PLC 2,190 93,153 1.13GBP

PETROFAC LTD 3,048 68,259 0.83GBP

PREMIER OIL PLC 10,073 56,826 0.69GBP

RECKITT BENCKISER GROUPPLC 2,740 135,412 1.64GBP

REED ELSEVIER PLC 12,760 102,919 1.25GBP

RIO TINTO PLC 4,080 198,148 2.40GBP

ROTORK 2,340 70,186 0.85GBP

VICTREX PLC 1,670 28,445 0.34GBP

XSTRATA PLC 3,060 46,509 0.56GBP

2,774,573 33.62

JUMBO SA 5,050 24,912 0.30EUR

GREECE

24,912 0.30

DIASORIN AZ 1,171 29,627 0.36EUR

ITALY

29,627 0.36

RANDGOLD RESOURCES LTD 780 79,823 0.97GBP

JERSEY

SHIRE PLC 3,380 117,822 1.43GBP

197,645 2.40

ASM INTERNATIONAL NV 2,158 63,759 0.77EUR

NETHERLANDS

BOSKALIS WESTMINSTER 1,020 37,592 0.46EUR


31


ROYAL PHILIPSELECTRONICS 2,955 62,451 0.76EUR

163,802 1.99

STATOIL ASA 6,420 165,127 2.00NOK

NORWAY

TGS NOPEC GEOPHYSICALCO 1,510 33,525 0.41NOK

198,652 2.41

INDITEX /REG. 1,170 96,112 1.16EUR

SPAIN

96,112 1.16

ALFA LAVAL AB 5,270 100,245 1.21SEK

SWEDEN

ATLAS COPCO AB A 5,624 121,418 1.47SEK

AXIS AB 1,790 36,164 0.44SEK

ERICSSON TEL -B- 5,580 57,304 0.69SEK

HENNES & MAURITZ AB 964 31,120 0.38SEK

SKF AB B 1,110 23,575 0.29SEK

TELE2 AB / B 2,600 50,784 0.62SEK

420,610 5.10

ABB LTD ZUERICH 11,490 217,242 2.63CHF

SWITZERLAND

ADECCO /AKTIEN NOM. 1,303 54,832 0.66CHF

CIE FINANCIERE RICHEMONTSA 3,070 155,979 1.89CHF

NOVARTIS AG BASEL 10,180 584,606 7.10CHF

RIETER HOLDING AG / NAM. 148 22,332 0.27CHF

ROCHE HOLDING AGGENUSSSCHEIN 2,360 401,788 4.87CHF

SYNGENTA AG 460 135,280 1.64CHF

THE SWATCH GROUP AG 170 63,902 0.77CHF

1,635,961 19.83

97.34TOTAL SHARES 8,030,984


8,030,984


2.66OTHER NET ASSETS LESS LIABILITIES 219,650


Europe EquityStatement of investments as at 31 December 2011(expressed in USD)



32

%


Pharmaceuticals and cosmetics 25.43Energy 16.09Electronics and electrical equipment 11.19Chemicals 8.26Coal mines, heavy industries 6.35Non-ferrous metals 5.74Internet Software 4.03Mechanics, machinery 3.80News transmission 3.15Holding companies 2.89Retail trade, department stores 2.67Consumer goods 2.35Index Options 1.43Graphic art and publishing 1.25Clock and watch-making industry 0.77Tyres and rubber 0.72Construction, building materials 0.46Office equipment and computers 0.44Automobile industry 0.32




Europe Equity

33


AGL ENERGY 8,345 122,209 1.03AUD


SHARES

AUSTRALIA

AMCOR LTD 15,012 110,612 0.94AUD

BHP BILLITON LTD 33,158 1,166,350 9.89AUD

CSL LTD 7,349 240,330 2.03AUD

LEND LEASE 14,693 107,511 0.91AUD

NEWCREST MINING 7,848 237,400 2.01AUD

ONESTEEL LTD 86,259 61,707 0.52AUD

ORICA LIMITED 5,889 145,883 1.24AUD

ORIGIN ENERGY LTD 4,537 61,852 0.52AUD

QR NATIONAL 762 2,663 0.02AUD

RIO TINTO LIMITED 7,092 437,034 3.71AUD

SANTOS LTD 2,546 31,847 0.27AUD

SIMS METAL MANAGEMENTLTD 7,000 90,494 0.77AUD

TOLL HOLDINGS LTD 9,800 42,264 0.36AUD

WESTFIELD RETAIL TRUSTSTAPLED 19,696 50,120 0.42AUD

WOODSIDE PETROLEUM LTD 7,412 231,937 1.96AUD

3,140,213 26.60

CHEUNG KONGINFRASTRUCTURE HOLDING 16,000 93,735 0.80HKD

BERMUDA ISLANDS

GOME ELECTRICALAPPLIANCE HOLD 379,000 87,837 0.74HKD

YUE YUEN IND HLD LTD 26,500 83,765 0.71HKD

265,337 2.25

AGILE PROPERTY HOLDINGSLTD 94,000 84,237 0.71HKD

CAYMAN ISLANDS

COUNTRY GARDENHOLDINGS 100,000 37,468 0.32HKD

KINGBOARD CHEMICALSHOLDINGS 22,000 65,151 0.55HKD

LIFESTYLE INTERNATIONALHOLDINGS LTD 36,500 80,457 0.68HKD

LONGFOR PPT 63,500 71,785 0.61HKD

INVESTMENTS

Asia Pacific ex Japan EquityStatement of investments as at 31 December 2011(expressed in USD)


TPK HOLDINGS CO. 2,200 26,890 0.23TWD

365,988 3.10

CHINA COAL ENERGY CO.LTD -H- 95,000 102,503 0.87HKD

CHINA

CHINA PETROLEUM &CHEMICAL CORP. H 224,000 235,633 1.99HKD

CHINA RAILWAYCONSTRUCTION CORP. -H- 100,000 55,108 0.47HKD

CHINA SHENHUA ENERGYCO. -H- 32,000 138,850 1.18HKD

DONGFANG ELECTRICCORP.LTD-H- 1,000 2,961 0.03HKD

JIANGSU EXPRESSWAY CO.H 77,000 70,887 0.60HKD

PETROCHINA CO. LTD / -H- 133,000 165,594 1.39HKD

SINOPEC SHANGHAIPETROCHEMICAL -H- 250,000 83,370 0.71HKD

ZHAOJIN MINING INDUSTRY -H- 30,000 47,665 0.40HKD

ZIJIN MINING GROUP -H- 227,000 85,345 0.72HKD

987,916 8.36

CHINA OVERSEAS LAND &INVESTMENT 66,000 110,303 0.93HKD

HONG KONG

CHINA UNICO (HK) 20,000 42,077 0.36HKD

CNOOC LTD 201,000 351,449 2.97HKD

FUSHAN INTERNAT ENERGYGROUP 200,000 67,726 0.57HKD

HANG LUNG PROPERTIESLTD 5,000 14,228 0.12HKD

HONGKONG & CHINA GAS 10,170 23,570 0.20HKD

HONGKONG ELECTRICHOLDINGS LTD 7,000 51,779 0.44HKD

MASS TRANSIT RAILWAYCORP. 28,000 90,670 0.77HKD

SWIRE PACIFIC LTD A 11,500 138,815 1.18HKD

890,617 7.54

BAJAJ AUTO LTD 3,076 84,923 0.72INR

INDIA

DABUR INDIALTD/DEMATERIALISED 40,000 75,264 0.64INR

GAIL (INDIA) LTD/DEMATERIALISED 5,505 40,193 0.34INR



34

HERO HONDA MOTORS/DEMAT. 2,500 86,150 0.73INR

HINDUSTAN UNILEVER LTD 17,485 132,616 1.12INR

OIL&NATURAL GAS CORPLTD 18,096 87,883 0.74INR

RELIANCE INDUSTRIES/DEMATERISALISED 13,507 179,284 1.52INR

SESA GOA LTD/DEMATERISALISED 17,729 51,976 0.44INR

STERLITE IND(INDIA) --- SHS 37,792 64,122 0.54INR

TATA CONSULTANCYSERVICES /DEMAT. 5,406 119,516 1.01INR

WIPRO LTD /DEMAT. 1,989 14,865 0.13INR

936,792 7.93

INDO TAMBANGRAYAMEGAH (ITM) 20,000 84,384 0.71IDR

INDONESIA

PT INDOFOOD SUKSES 53,500 27,117 0.23IDR

PT INTERNATIONAL NICKELINDONESIA TBK 230,000 80,658 0.68IDR

PT SEMEN GRESIK (PERSERO)TBK 47,500 58,302 0.49IDR

PT UNILEVER INDONESIA 44,000 89,447 0.76IDR

TELKOM INDONESIA S -B- 181,000 139,843 1.19IDR

479,751 4.06

DIGI. COM BHD 89,000 108,857 0.92MYR

MALAYSIA

IOI CORPORATION BHD 55,200 93,617 0.79MYR

KUALA LUMPUR KEPONGBHD 15,600 111,630 0.95MYR

MAXIS BHD 60,000 103,649 0.88MYR

PETRONAS GAS BHD 17,300 82,894 0.70MYR

500,647 4.24

FLETCHER BUILDING 7,637 36,507 0.31NZD

NEW ZEALAND

36,507 0.31

JOLLIBEE FOODS CORP. 10,000 21,158 0.18PHP

PHILIPPINES

21,158 0.18

COMFORTDELGROCORPORATION LTD 27,000 29,447 0.25SGD

SINGAPORE



KEPPEL CORP. LTD 22,200 159,133 1.35SGD

SINGAPORE TELECOM/BOARD LOT 1000 62,000 147,665 1.25SGD

336,245 2.85

CELLTRION INC 3,000 92,771 0.79KRW

SOUTH KOREA

DAEWOO SHIPBUILDING &MARINE ENGINEERING CO. 4,150 84,180 0.71KRW

DC CHEMICAL CO. LTD 197 36,722 0.31KRW

HONAM PETROCHEMICALCO. LTD 400 103,281 0.87KRW

HYUNDAI MOBIS 882 223,158 1.89KRW

KIA MOTORS CORP. 2,134 122,753 1.04KRW

KOREA ZINC CO. LTD 181 46,813 0.40KRW

LG CORP. 2,009 106,874 0.90KRW

LG DISPLAY CO. LTD 2,630 56,760 0.48KRW

LG HOUSEHOLD &HEALTHCARE LTD 100 41,477 0.35KRW

LS INDUSTRIAL SYSTEMS CO.LTD 400 22,386 0.19KRW

POSCO 445 144,732 1.23KRW

SAMSUNG HEAVYINDUSTRIES 3,900 94,795 0.80KRW

SK TELECOM CO. LTD 24 2,896 0.02KRW

WOONG JIN COWAY CO. LTD 2,060 63,257 0.54KRW

1,242,855 10.52

ASUSTEK COMPUTER INC. 17,205 122,032 1.03TWD

TAIWAN

AU OPTRONICS CORP. 119,000 50,447 0.43TWD

CHICONY ELECTRONICS CO. 40,000 64,924 0.55TWD

CHUNGHWA TELECOM CO.LTD 59,894 196,998 1.67TWD

FORMOSA CHEMICALS &FIBER CO. 49,000 127,058 1.08TWD

FORMOSA PLASTICS 35,410 92,520 0.78TWD

GIANT MANUFACTURE CO.LTD 22,000 83,828 0.71TWD

HON HAI PRECISIONINDUSTRY CO. LTD 56,000 150,382 1.27TWD

LITE-ON TECHNOLOGY CORP. 90,505 101,217 0.86TWD

NAN YA PLASTICS CORP. 34,650 68,586 0.58TWD

POWERTECH TECHNOLOGYINC. 34,700 70,402 0.60TWD

TAIWAN GLASS IND CORP. 400 404 0.00TWD


35


TAIWAN SEMICONDUCTORMANUFACTURING 236,000 583,924 4.94TWD

TSRC CORPORATION 34,900 83,933 0.71TWD

1,796,655 15.21

PTT GLOBAL PUBLIC CO.FOREI REG 14,257 27,609 0.23THB

THAILAND

PTT PLC CO. LTD /REG. 15,300 154,457 1.31THB

182,066 1.54

94.69TOTAL SHARES 11,182,747

THE LINK REIT 38,000 139,932 1.18HKD

INVESTMENT FUNDS

HONG KONG

139,932 1.18

1.18TOTAL INVESTMENT FUNDS 139,932

STOCKLAND /UNITS 34,575 112,715 0.95AUD

INVESTMENT FUNDS

AUSTRALIA

112,715 0.95

0.95TOTAL INVESTMENT FUNDS 112,715


11,435,394


3.18OTHER NET ASSETS LESS LIABILITIES 375,617





36

%


Coal mines, heavy industries 15.96Energy 11.38Electronics and electrical equipment 8.60Chemicals 7.80Real estate companies 6.15News transmission 5.37Non-ferrous metals 5.33Automobile industry 4.38Holding companies 3.43Office equipment and computers 3.11Pharmaceuticals and cosmetics 2.90Transport 2.71Public services 2.71Precious metals 2.58Construction, building materials 2.07Internet Software 2.06Index Options 2.03Agriculture and fishing 1.74Mechanics, machinery 1.70Food 0.99Package and container industry 0.94Environmental services & recycling 0.77Textile 0.71Retail trade, department stores 0.68Other services 0.54Gastronomy 0.18




Asia Pacific ex Japan Equity

Notes to the Financial Statements

37

1. Basis of presentation

HSBC Amanah Funds (“the Company”) is incorporated under the laws of the Grand Duchy of Luxembourg as an investment company with variable capital (Société d’Investissement à Capital Variable (“SICAV”)). The capital comprises various classes of shares each relating to a separate portfolio (each a “sub-fund”) consisting of securities, cash and other sundry assets and liabilities. The accompanying financial statements present the assets and liabilities of the individual sub-funds and of the Company taken as a whole. The financial statements of each sub-fund are expressed in the currency designated in the prospectus for that particular sub-fund and the financial statements of the Company are expressed in United States dollars (USD). The financial statements have been prepared in accordance with the format prescribed by the Luxembourg authorities for Luxembourg investment companies. The Company is an officially registered investment fund under Part I of the 2010 law relating to undertakings for collective investment. In the prospectus and in the reports, the short names of the sub-funds are used. The complete name of each sub-fund consists of “HSBC Amanah Funds” plus the short name of the sub-fund.

Notes to the Financial Statements (continued)

38

2. Share capital

Description

Class A A Shares are available to all investors. The minimum initial investment amount and the minimum holding are USD 5,000 or the equivalent in the relevant currency of denomination of the sub-fund.

Class I I Shares are only available for investors qualifying as institutional investors within the meaning of article 174 of the 2010 Law. The minimum initial investment amount and the minimum holding for I Shares are USD 1,000,000 or the equivalent in any other major currency.

Class S S Shares are available through specific distributors selected by the Share Distributor provided that (in

addition) the investors qualify as institutional investors within the meaning of article 174 of the 2010 Law. The minimum initial investment amount and the minimum holding for S Shares are USD 500,000 or the equivalent in any other major currency. No S Shares were issued as at 31 December 2011.

Class W W Shares are available through specific distributors selected by the Share Distributor provided that (in addition) the investors qualify as institutional investors within the meaning of article 174 of the 2010 Law. The minimum initial investment amount and the minimum holding for W Shares are USD 100,000 or the equivalent in any other major currency.

Class Z Z Shares are available to investors having entered into a discretionary management agreement with an HSBC Group entity and to investors subscribing via distributors selected by the Share Distributor provided that such investors qualify as institutional investors within the meaning of article 174 of the 2010 Law. The minimum initial investment amount and the minimum holding for Z Shares are USD 1,000,000 or the equivalent in any other major currency.

The Board of Directors has resolved to issue Distribution and Capital-Accumulation Shares as different classes of the sub-funds. Capital-Accumulation Shares are identifiable by a “C” following the sub-fund and class names and do not pay any dividends. The Company has applied for UK reporting fund status for certain distributing share classes from the accounting period commencing on 1 January 2010. Prior to this, the Company had applied UK distributor status for such distributing share classes. Details of the distributing share classes that have UK reporting fund status can be found on the HM Revenue & Customs’ website at www.hmrc.gov.uk. At the date of this report the exact location of this report is http://www.hmrc.gov.uk/collective/rep-funds.xls At the 31 December 2011, the following classes were open:

Global Equity Index Fund Global Equity Europe Equity Asia Pacific ex Japan Equity

Class Launch date Class Launch date Class Launch date Class Launch date AC 12/11/2009 AC 09/04/2009 AC 13/01/2009 AC 31/07/2009 AD 09/01/2001 AD 21/01/2010 AD 15/04/2011 AD 14/08/2009 W 31/03/2004 IC 17/05/2011 ZC 13/01/2009 ZC 09/01/2009 Z 22/12/2003 ZD 30/11/2007


39

3. Accounting Policies The following accounting policies have been used consistently in dealing with items which are considered material in relation to the Company’s financial statements. a) Accounting convention The financial statements have been prepared under the historical cost convention modified by the revaluation of investments. b) Investments Investments are included in the Statement of Net Assets at their market value at 31 December 2011. The market values are based on closing mid-market prices on leading markets. c) Income and Expenses Dividends are accounted for on an ex-dividend basis. d) Foreign Exchange The cost of investments, income and expenses in currencies other than the Fund's relevant reporting currency have been recorded at the rate of exchange ruling at the time of the transaction. The market value of the investments and other assets and liabilities in currencies other than the relevant reporting currency has been converted at the rates of exchange ruling at 31 December 2011. e) Realised Gain/(Loss) on Sale of Investments Realised gain/(loss) on sale of investments is the difference between the historical average cost of the investment and the sale proceeds. 4. Charges and Expenses The Company pays to the Management Company a management fee per annum on the basis of the Net Asset Value, calculated daily and payable monthly in arrears at the rate disclosed in the prospectus. The fee covers all management, advisory and distribution services provided to the sub-fund of the Company by the Management Company, the Investment Adviser and the Share Distributor. In addition, the Management Company is entitled to a fee of 0.01% p.a. on the Net Asset Value of the sub-funds (payable monthly). The annual advisory charge payable to the Management Company from the Net Asset Value of the relevant category of Shares issues in each sub-fund is as follows:

Global Equity Index Fund Global Equity Europe Equity Asia Pacific

ex Japan Equity

AC 0.75% AC 1.50% AC 1.50% AC 1.50% AD 0.75% AD 1.50% AD 1.50% AD 1.50% W 0.00% IC 0.75% ZC 0.00% ZC 0.00% Z 0.00% ZD 0.00%


40

4. Charges and Expenses (continued)

S and W Shares incur no charges. All the fees and charges allocated to such Share classes will be paid directly by a member of an officiated entity of the HSBC Group. Z Shares incur no annual management charge. Subject to specific arrangements which may be in place for certain classes of Shares (W Shares), the Company pays in principle the charges and expenses of its incorporation, promotion and operation. This includes the remuneration of the Central Administration and Domiciliary Agent, the Registrar and Transfer Agent for central administration services in Luxembourg, the Management Company for asset management services, HSBC Bank plc for the provision of services by the Shariah Committee, the Custodian and its correspondent banks, the Central Paying Agent and Paying Agents, the U.K. Representative as well as all other agents of the Company assisting in its administration and representation. The Company pays to HSBC Bank plc a fee for its services rendered with respect to the appointment of the Shariah Committee. The fee is payable at the end of each calendar quarter. It currently amounts to USD 2,000 and is subject to annual review. The Company also pays reasonable related out-of-pocket expenses. The Company pays to the Central Administration, Domiciliary and Registrar and Transfer Agents customary fixed monetary fees, as well as those expressed as a percentage of the Net Asset Value, calculated daily and payable quarterly in arrears for central administration and registrar and transfer services. For the period from 1 January 2011 to 31 December 2011, the Administration Agent and the Registrar and Transfer Agent were entitled to remuneration that equates to 0.333% of the average net assets of the Company. The Company also pays the charges of RBC Dexia Investor Services Bank S.A. for its services as Custodian and Central Paying Agent. Its customary charges are expressed as a degressive fraction of percentage based on net assets, payable quarterly in arrears. In addition, RBC Dexia Investor Services Bank S.A. is entitled to be reimbursed by the Company for its reasonable out-of-pocket expenses and disbursements and the fees and expenses of its correspondent banks. The Company also pays other expenses incurred in its operation including the fees of its auditors and legal advisers, the cost of printing and distributing the annual and half-yearly reports, the prospectus, the costs and expenses incurred in connection with the formation and registration of the Company in various jurisdictions, all brokerage, taxes and governmental duties and charges payable by the Company, and fees and expenses involved in registering and maintaining the registration of the Company’s Shares, with any governmental agency or stock exchange, the cost of publication of prices and its other operating expenses such as accounting and pricing costs, marketing costs, litigation and other recurring or non-recurring expenses. Allocation of Charges and Expenses

Each sub-fund or each class of shares is charged with all costs or expenses attributable to it. Costs and expenses not attributable to a particular category are allocated between the categories on an equitable basis. Charges and expenses shall be charged first against investment income. The costs and expenses incurred in connection with the formation and registration of the Company as a UCITS in Luxembourg and elsewhere and the offer of Shares, including the costs incurred in obtaining a listing for the Shares on the Luxembourg Stock Exchange, all legal and printing costs and other preliminary expenses were borne by the sub-funds out of their assets on a pro rata accrual basis and amortised against capital over five years when incurred.


41

4. Charges and Expenses (continued)

Detail for Other Liabilities (in USD)

Global Equity

Index Fund

Global Equity Europe Equity Asia Pacific ex

Japan Equity

Subscription Tax (note 5) 15,361 7,911 1,810 3,150 Depositary Bank Commission, Domiciliation, Administration and Transfer Agent Fees 7,111 12,762 12,926 12,654 Audit, Printing and Publication Fees 811 1,986 278 414 Other Charges 93,376 131,990 27,411 73,150 TOTAL 116,659 154,649 42,425 89,368

5. Taxation

The Company is not liable to any Luxembourg tax on profits or income, nor are dividends paid by the Company liable to any Luxembourg withholding tax. The Company is however liable in Luxembourg to a tax of 0.05% per annum of its Net Asset Value (Class A shares), such tax being payable quarterly on the basis of the value of the net assets of the Company at the end of the relevant calendar quarter. The tax is reduced to 0.01% per annum for sub-funds or share classes (Class I, W, S and Z Shares) restricted to institutional investors within the meaning of article 174 of the 2010 Law. The table on the top of page 42 shows reporting income for the previous financial year ended 31 December 2010, as per Chapter 7 of the UK Offshore Funds (Tax) regulations 2009. The Company will make available to shareholders the reportable income information for the financial year ended 31 December 2011 by 30 June 2012 at www.assetmanagement.hsbc.com/uk/globalfunds/amanah. The information should be used by UK tax payers for the purposes of completing their UK tax returns. If investors do not have access to the internet they can apply in writing for a copy of this information to HSBC Amanah Funds, 16, boulevard d'Avranches, L-1160 Luxembourg. Dividends and capital gains (if any) received on investments made by the Company may be subject to withholding taxes imposed by the country from which the investment income/gains are received and such taxes may not be recoverable by the Company or its shareholders.


42

5. Taxation (continued)

Dividends per Share

in respect of the

reporting period

Sub-Fund

ISIN Code

Dividend

per

Share

(USD)

Payment

Date *

Total

Dividend

per

Share for

the

reporting

period

(USD)

Excess of

reported

income per

share over

amount

distributed

per share

for the

period **

(USD)

Fund

distribution

date

Global Equity Index Fund - AD LU0110459103 0.0267 04/04/2011 0.0267 0.0107 30/06/2011

Global Equity Index Fund - WD LU0187035489 0.1137 04/04/2011 0.1137 Nil 30/06/2011

Global Equity Index Fund - ZD LU0154991920 0.0798 04/04/2011 0.0798 0.0053 30/06/2011

Global Equity - AD LU0290245298 Nil N/A Nil Nil 30/06/2011

Global Equity - ZD LU0290246007 0.0881 04/04/2011 0.0881 0.0008 30/06/2011

Asia Pacific ex Japan Equity - AD LU0384688981 Nil N/A Nil Nil 30/06/2011

As at the date of this report, all of the above-mentioned sub-funds remain reporting funds.

* The date upon which a declared dividend was scheduled to be paid. ** This figure is treated as a foreign dividend for UK tax purposes for a shareholder investing in this sub-fund at close

of business on 31 December 2010. The deemed payment date was 30 June 2011, which falls in the 2011/2012 UK income tax year.


43

6. Foreign exchange contracts

Sub-funds Contract

Date

In exchange

for

Settlement Contract to

deliver

Unrealised

Gain /

(loss) by

Sub-Fund


28/12/2011 AUD 15,097 03/01/2012 USD 15,257 214 28/12/2011 DKK 26,236 03/01/2012 USD 4,563 19 28/12/2011 EUR 47,788 03/01/2012 USD 61,796 238 28/12/2011 GBP 36,446 03/01/2012 USD 56,395 244 28/12/2011 SEK 31,414 03/01/2012 USD 4,542 40 28/12/2011 AUD 25,191 04/01/2012 USD 25,365 445 28/12/2011 CHF 46,436 04/01/2012 USD 49,271 388 28/12/2011 CHF 5,328 04/01/2012 USD 5,663 34 28/12/2011 GBP 32,220 04/01/2012 USD 49,727 343 29/12/2011 GBP 24,264 04/01/2012 USD 37,393 313 29/12/2011 SGD 3,103 04/01/2012 USD 2,381 12 29/12/2011 JPY 2,134,681 05/01/2012 USD 27,458 288 30/12/2011 JPY 1,679,840 06/01/2012 USD 21,711 123

TOTAL in USD 2,701

The above is representative of a foreign exchange settlement. Given the time of year and the number of days taken between the trade date and the value date, the above was treated as a 'foreign exchange contract', rather than a GBP to USD foreign exchange settlement. 7. Dividends At the Annual General Meeting of the Company held on 15 April 2011, the following dividends were declared, out of the profits of the Company for the year ended 31 December 2010, for the classes listed below: Name Currency Ex-date Payment date Total amount paid

Global Equity Index Fund -class W USD 29/03/2011 04/04/2011 682,681 Global Equity Index Fund -class AD USD 29/03/2011 04/04/2011 86,846 Global Equity Index Fund -class Z USD 29/03/2011 04/04/2011 194,255 Global Equity -class ZD USD 29/03/2011 04/04/2011 534,254


44

8. Transaction Expenses The transaction expenses linked to security dealing have been written off against the realised gain/(loss) from the sale of investments. In addition to the transaction fees included in the caption “Other Charges” in the Statement of Operations and Changes in Net Assets, the Fund incurred transaction costs relating to purchase or sale of transferable securities, money market instruments, derivatives or other eligible assets: Global Equity Index Fund 70,353 USD Global Equity 101,126 USD Europe Equity 18,904 USD Asia Pacific ex Japan Equity 63,300 USD 9. Detail for other charges (in USD)

Global Equity

Index Fund

Global Equity Europe Equity Asia Pacific ex Japan Equity

Administrative fees 39,983 81,538 64,975 62,605 Dealing fees 142,657 16,989 21,197 24,967 Legal fees - 48,849 6,754 11,800 Other charges 63,499 67,618 15,799 54,085 TOTAL 246,139 214,994 108,725 153,457 10. Dividend Purification

The Shariah Committee has issued guidelines to quantify the annual amount of income of the Company that should be donated to charity, being derived from companies eligible for investment pursuant to the investment objective, policy and restrictions set out above, but that are engaged in an activity or activities of a marginal nature which is or are proscribed by the Shariah Committee and which is not or are not screened out by the investment restrictions. Such amount will be calculated on an annual basis, based on the purification ratios, expressed as a percentage of each Company dividend. The purification ratios will be provided by the relevant index provider for all companies included in the sub-funds. For companies, which are not included in the relevant indices, purification ratios will be calculated based on the financial information of these companies received from the Investment Advisers. Such income will be disbursed as a charitable donation to one or more worthy causes approved by the Shariah Committee. 11. Commitment Approach

The sub-funds will use the commitment approach to value exposure to derivative positions. The commitment approach is generally calculated by converting the derivative contract into the equivalent position in the underlying asset embedded in that derivative, based on the market value of the underlying asset. Purchased and sold financial derivative instruments may be netted in accordance to the ESMA's guidelines 10/788 in order to reduce global exposure. Beyond these netting rules and after application of hedging rules, it is not allowed to have a negative commitment on a financial derivative instrument to reduce overall exposure and as such, risk-exposure numbers will always be positive or zero. There are currently no derivative positions in any of the sub-funds, however, if approved by the Shariah committee; the sub-funds may have simple and limited positions in financial derivative instruments to gain exposure on financial markets when the relevant sub-fund Investment Adviser believes that it is more efficient to purchase financial derivative instruments than the corresponding physical securities.

Publication of TER (Total Expense Ratio)

45

The Total Expense Ratio ("TER") is the gross amount of the expenses of the Company to its average net assets. The TER includes all the expenses levied on the assets of the Company such as management charges, administration charges, custodian charges, distribution charges, professional charges of the auditor, professional charges of the legal advisers, registration charges and duties. The TER does not include subscription and redemption fees paid directly by the investor.

Sub-Fund Share

class

TER

(in %)

Global Equity Index Fund AC 1.28 AD 1.27 W 0.00 Z 0.43 Global Equity AC 2.25 AD 2.35 IC 1.62 ZD 0.61 Europe Equity AC 4.28 AD 4.50 ZC 2.41 Asia Pacific ex Japan Equity AC 3.49 AD 3.25 ZC 1.21

Currency Conversion Table

46

To help Shareholders calculate the performance of their individual investment in the reference currency, the following table has been produced. The table shows the value of one US dollar against various currencies (as at the given dates). The market value of investments as well as Other Assets and Liabilities expressed in currencies other than the reporting currency are translated at the exchange rate prevailing as at 31 December 2011. The consolidated figures are expressed in USD and include the total of the financial statements of the different sub-funds. For the Statement of Net Assets and the Statement of Operations and Changes in Net Assets, the exchange rate prevailing at the sub-fund’s valuation point in Luxembourg as at 31 December 2011 is:

31 December 2011 31 December 2010

USD USD

AUD 1.025200 1.025050

EUR 0.770327 0.745406

GBP 0.643459 0.638712

HKD 7.766628 7.773632

JPY 76.940004 81.104974

KRW 1,152.073433 1,135.073780

SEK 6.855278 6.722870

CHF 0.935100 0.932100

CAD 0.982077 0.993650

DKK 5.725344 5.554846

IDR 9,067.827349 9,009.820705

INR 53.103924 44.714720

MYR 3.170004 3.083498

MXN 13.955371 12.333954

NOK 5.967940 5.812500

PLN 3.433948 2.954454

ZAR 8.073371 6.615769

NZD 1.281887 1.280082

SGD 1.296650 1.281049

TWD 30.279174 29.156219

PHP 43.954112 43.773255

THB 31.549722 30.144997

TRL 0.521648 0.645703

Currency Conversion Table (continued)

47

The exchange rate prevailing at the Asia Pacific sub-fund's valuation point in Luxembourg as at 31 December 2011 is:

31 December 2011 31 December 2010

USD USD

AUD 1.021950 0.980536

EUR 0.772260 0.753977

HKD 7.766628 7.771578

KRW 1,156.069364 1,127.395716

IDR 9,124.920157 8,977.466559

INR 53.279344 44.734723

MYR 3.172247 3.065003

NZD 1.284439 1.288992

PHP 43.954112 43.773254

SGD 1.297401 1.286000

THB 31.500032 30.085141

TWD 30.312216 29.103609

Fund Holiday Calendar for 2012

48

HSBC AMANAH FUNDS (“Amanah”)

updated on 31 December 2011.

All Amanah sub-funds will have no NAV calculated on the following days in Luxembourg:

All Saturdays and Sundays

And on the following dates:

LUXEMBOURG

6th April 9th April 1st May 17th May 15th August 1st November 25th December 26th December

In addition on the above dates,the following funds will have no NAV calculated on the following dates:

HSBC Amanah Global Equity Index Fund: (US*)

Date Market holiday 2nd January United States 16th January United States 20th February United States 4th July United States 3rd September United States 22nd November United States

HSBC Amanah Global Equity: (US*) Date Market holiday 2nd January United States 16th January United States 20th February United States 4th July United States 3rd September United States 22nd November United States

Fund Holiday Calendar for 2012 (continued)

49

HSBC Amanah Europe Equity: (UK, Germany, Switzerland)

Date Market holiday 2nd January United Kingdom, Switzerland 7th May United Kingdom 4th June United Kingdom 5th June United Kingdom 1st August Switzerland 27th August United Kingdom 24th December Germany, Switzerland 31st December Germany, Switzerland

HSBC Amanah Asia Pacific Ex Japan Equity: (Australia, Korea, Hong Kong) (Note – NAV is calculated on the Business Day following the Dealing Day. Actual market holiday is shown in brackets)

Date Market holiday 20th January Korea, Hong Kong (23rd January) 23rd January Korea, Hong Kong (24th January) 24th January Hong Kong (25th January) 25th January Australia (26th January) 29th February Korea (1st March) 3rd April Hong Kong (4th April) 10th April Korea (11th April) 24th April Australia (25th April) 5th June Korea (6th June) 8th June Australia (11th June) 29th June Hong Kong (2nd July) 28th September Australia, Hong Kong, Korea (1st October) 1st October Hong Kong (2nd October) 2nd October Korea (3rd October) 22nd October Hong Kong (23rd October) 18th December Korea (19th December) 28th December Korea (31st December) *The NYSE and Nasdaq are open on Columbus Day (8 October 2012) and Veterans Day (12 November 2012) therefore equity sub-funds listing the US as a material market will not have a holiday on these dates.

50

HSBC Global Asset Management, the sponsor of HSBC Amanah Funds, is the asset management specialist of the HSBC Group and operates through HSBC Bank plc and its subsidiaries. HSBC Global Asset Management is the trading name of HSBC Global Asset Management Limited. HSBC Global Asset Management is established at 8 Canada Square, London E14 5HQ which is its registered office. © Copyright. HSBC Global Asset Management Limited 2011. All Rights Reserved 14846/0608

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